Canadian Dollar Technical Price Outlook: Near-term Trade Levels
- Canadian Dollar up to date technical commerce ranges – Daily & Intraday Charts
- USD/CAD plunges into key technical assist zone- danger for near-term inflection
- Resistance 1.2546, 1.22640/47 (key) – Support 1.2432/70 (key), 1.2362/72 (essential)
The Canadian Dollar surged greater than 1.47% in opposition to the US Dollar because the begin of the week with USD/CAD plunging right into a key technical assist zone as we speak. The bears could also be susceptible into this threshold and we’re in search of a doable inflection within the days forward. These are the up to date targets and invalidation ranges that matter on the USD/CAD value charts. Review my newest Strategy Webinar for an in-depth breakdown of this Loonie technical setup and extra.
Canadian Dollar Price Chart – USD/CAD Daily
Chart Prepared by Michael Boutros, Technical Strategist; USD/CAD on Tradingview
Technical Outlook: The US Dollar has plummeted greater than 2.8% off the month-to-month highs with a break under confluent assist on the month-to-month open / opening-range lows taking value in the direction of a key assist zone as we speak on the 78.6% Fibonacci retracement of the October rally / 100% extension of the December decline at 1.2432/70. Note that the decrease parallel of the ascending pitchfork we’ve been monitoring off the 2021 lows additionally converges on this zone and the instant decline could also be susceptible into this area – we’re in search of doable value inflection down right here.
Canadian Dollar Price Chart – USD/CAD 240min
Notes: A better have a look at Loonie value motion exhibits USD/CAD buying and selling inside the confines of a near-term descending pitchfork off the December highs with the 25% parallel additional highlighting near-erm assist into 1.2432/70. Initial resistance now eyed at 1.2546 with near-term bearish invalidation set to the 2022 / weekly opens at 1.2640/47. A break under this key threshold may gas one other accelerated bout of losses with such a situation exposing subsequent assist aims on the October low-day shut / 61.8% retracement of the June advance at 1.2362/72 and the decrease parallel / 1.2288.
Bottom line: A break of the month-to-month opening-range takes USD/CAD into multi-month uptrend assist – battle-lines drawn heading into the shut of the week. From at buying and selling standpoint, a superb area to scale back short-exposure / decrease protecting stops – rallies ought to be capped by the weekly open IF value is certainly heading decrease. Review my newest Canadian Dollar Weekly Price Outlook for a more in-depth have a look at the longer-term USD/CAD technical commerce ranges.
For an entire breakdown of Michael’s buying and selling technique, evaluate his Foundations of Technical Analysis collection on Building a Trading Strategy
Canadian Dollar Trader Sentiment – USD/CAD Price Chart
- A abstract of IG Client Sentiment exhibits merchants are net-long USD/CAD – the ratio stands at +2.52 (71.56% of merchants are lengthy) – usually bearish studying
- Long positions are12.45% greater than yesterday and 62.50% greater from final week
- Short positions are 14.54% decrease than yesterday and 11.43% decrease from final week
- We usually take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests USD/CAD costs could proceed to fall. Traders are additional net-long than yesterday and final week, and the mix of present positioning and up to date modifications offers us a stronger USD/CAD-bearish contrarian buying and selling bias from a sentiment standpoint.
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– Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex
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